Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Slides on OPEC Stalemate Worry, Record U.S. Output

Commodities Mar 04, 2020 03:24PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Barani Krishnan

Investing.com - Worry that oil producing heavyweights Saudi Arabia and Russia were headed for a stalemate on production-cut talks sent crude prices lower on Wednesday, amid data showing U.S. output at a new record high.

West Texas Intermediate, the benchmark for U.S. crude prices, settled down 40 cents, or 0.8%, at $46.78 per barrel.

Brent, the London-traded global benchmark for crude, settled down 73 cents, or 1.4%, to $51.13

Crude prices began the day up on reports that oil producers gathered in Vienna under the OPEC+ alliance would agree to a total production cut of at least 1 million barrels per day from this quarter onward to mitigate some of the demand destruction to energy from the novel coronavirus outbreak. Adding to a prior deal in December, OPEC+ would be removing a total 3.1 million bpd, or 3.1% of global supply, from the market if those reports proved true.

Yet Bloomberg reported by midday that Russian Energy Minister Alexander Novak had left Vienna, ahead of Friday’s all-important meeting with the Saudis and the customary news conference that would announce the new deal. Bloomberg did not provide details but CNBC reported that while the Saudis had an appetite for higher oil prices, Moscow was “perfectly happy” with crude futures at between $50 and $60.

“Every oil trader has his finger on the buy or sell button watching this OPEC meeting,” said John Kilduff, founding partner at New York energy hedge fund Again Capital. “A deal to cut another 1 million bpd or more means a buy and a no-deal means sell. For now, everyone assumes it’s a sell.”

WTI and Brent futures rose as much 2% earlier in the day and remained up after the U.S. Energy Information Administration reported a positive inventory report for crude and fuel stockpiles in the country for a third week running.

The EIA said crude stockpiles rose by 785,000 barrels for the week ended Feb. 28, the EIA said. That compared with expectations for a build of 2.64 million barrels, according to forecasts compiled by Investing.com.

Gasoline stockpiles fell by 4.34 million barrels, versus forecasts for a decline of about 2.1 million barrels. Distillates inventories dropped by 4 million barrels, compared with expectations for a drawdown of 1.93 million barrels

While the stockpile numbers looked good, the EIA also took some of the shine off its inventory report by announcing that crude output in the world’s largest oil producer, the United States, was estimated to have reached a record high of 13.1 million barrels per day last week. The prior all-time high was 13 million bpd, achieved in December.

Oil Slides on OPEC Stalemate Worry, Record U.S. Output
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Dr Steven Walker
Dr Steven Walker Mar 05, 2020 12:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Has anyone noticed that "NET IMPORTS" negates production increase Y-o-Y?
cran Vivid
cran Vivid Mar 04, 2020 4:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I opened an small long position in contrary of the no-likely-a-deal for OPEC+. Let's see. At the end of the day cure for the low price is low price. Its interesting we had a record high production last week and seriously expecting more OPEC+ cut in a big way.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email